Building, Contents & Equipment

We would recommend that cover is arranged on an "All Risks" basis for the buildings and contents at your premises. This covers damage from a wide range of causes including fire, flood, vandalism, theft, storm, burst pipe and accidental damage etc.

If you own the building consider extending cover to include damage arising from subsidence landslip and heave.

Theft Cover is usually restricted to losses arising from forcible and violent entry or exit to the premises. "Walk in" theft is therefore excluded. Additional Cover can be arranged if necessary.

Carefully assess the values at risk and ask yourself a series of questions:

Would we be able to replace the Plant and Equipment with items of a similar age and condition, if not a new for old basis of Cover should be considered and reflected in the sum insured.

  1. How do Stock values fluctuate, what is the maximum and average probable losses.
  2. Do we need to extend Cover for equipment away from the premises e.g. Laptops, Test Equipment, Mobile Phones , portable construction equipment , property at customers or suppliers premises eg tooling.
  3. Do we hire in equipment and are you responsible for loss or damage to it.
  4. Assess the rebuilding cost of the property. Rebuilding cost is often less than market value which includes the land value of the premises.
  5. Identify the value of the Computer Hardware. Is the Software purchased under License. In the event of loss or damage would it be possible to replace the software subject to payment of a nominal fee.

Phone 01634 862525 to discuss.

Business Interruption

If you do suffer serious damage at your premises it is likely it will affect your ability to continue to trade. We recommend Business Interruption Insurance which will compensate for loss of income and profit following damage at your premises . In addition it helps to get you back in business by paying the Increased Cost of Working e.g. overtime payments to staff , rent alternative premises , hire in equipment etc.

Consider what affect it would have if you are unable to trade for one or two months . When you are able to recommence trading would you be able to reacquire your customers. Many customers would have had to find alternative suppliers and have developed relationships with these new suppliers. Experience shows loss of trading for periods as short as 4 – 8 weeks can affect the income and profitability of a business for over a 12 month period.

The Basis of Cover varies depending upon the industry within which you work and your own specific requirements . Foe example Contractors earn income and profit away from their premises and a more limited but cost effective basis of Cover may be considered - Increased Cost of Working. However for many Full of income and profit protection should be considered.

For the professions Cover should be based upon the gross fees of the practice . For many businesses it should be based upon gross profit which for Insurance purposes is a general rule “ Turnover less Purchases“ . In the event of serious damage many of the costs of the business continue . These include rent, rates, wages etc. . The only significant saving is in material purchases.

Money Insurance
Consider the cash handling of the business. Who accepts cash and to what values . Business handling cash have an increased risk of theft.

Consider values of cash on the premises during business hours, out of business hours, in locked safes in the homes of authorised employees and Directors. Consider your procedures.

Goods in Transit
Cost depends upon load limit per vehicle and numbers of vehicles for which Cover is required. Do you use outside hauliers . Do they accept full liability for your goods or limit their liability by contract conditions.

Consider your working practices . Do you leave vehicle loaded overnight . Is Cover limited to losses during normal business hours or does it apply 24 hours a day. Cover can be tailored to your individual requirements.

Other protection includes book debts , credit insurance amongst others

These are a general introduction to the subjects and specific advice should be sought when arranging cover

For further details contact Matt Sendall-King.

Matthew Sendall-King

Matt joined UK Special Risks in 2004, prior to joining us Matt was a Branch Manager for a National Broker. In his time with us he has developed and learnt at a phenomenal pace to become a core member of the team. His innovative and enthusiastic approach is refreshing and easy to deal with for clients. Matt has an expert working knowledge of our Cleaning, Electrical and Kitchen and Bathroom Industry schemes as well as managing many of our key clients at renewal and throughout the lives of their policies. Matt is an extremely easy person to talk to about practically any class of Commercial Insurance and is happy to share his knowledge.

Direct Dial: 01634 662917

UK Special Risks Ltd, Registered office First Insurance Solutions House, Centre 3000, St. Leonards Road, Maidstone, Kent ME16 0LS